Program Income

What is program income?

Program income is gross income directly generated by a project during the award period. Examples include conference fees where the sponsor is covering the bulk of the conference costs; sale of assets purchased by project funds (e.g. livestock sales); fees for services when the project is providing the service; and sale of items such as books, manuals, software or videos created with project funding (see APM Section 45.13 for more specific information).

When should I start thinking about program income?

Ideally any anticipated program income is identified when creating the budget for your proposal. By creating an overall budget, including any program income or match, you will have a better idea of the funds needed from the sponsor. Note that one of the possible options for the treatment of program income is to be used as part of any cost share obligation.

Can program income be used as part of my required match?

Generally speaking, yes, program income can be considered third-party match.

Can I use program income funds for items that are not allowed by the sponsored funding?

No. Program income has the same allowability restrictions as the rest of the award.

May program income always be used to provide additional funds to the project?

Not necessarily. Federal funding agencies may elect to use one of four methods to handle program income: additive, cost share/match, deductive and additive/deductive. Please see APM 45.13 for detail on each of these methods. It should be noted that providing an estimate of how program income fits into the overall budget to the sponsor at the proposal stage helps the sponsor understand that they are only funding a portion of the project.

How does the University account for program income?

If you have noted that you anticipate program on your proposal then OSP will automatically create a secondary budget at the time the main budget is set up. No funds will be budgeted into the program income account until they are received. As much as is feasible, program income funds should be used first when expensing costs to the project.

Who should be depositing program income funds?

Unless you are in a non-Moscow location program income funds should be forwarded to OSP for deposit. Please attach a GRT form and also a note indicating which expense category the funds should be budgeted into. Off-campus locations may deposit funds themselves, as long as those funds go into the central UI bank account. Please forward a copy of the deposit slip and the budgeting information to postaward@uidaho.edu so that we can process appropriately.

What happens if there are program income funds left over at the end of the grant period?

Since federal guidelines indicate that program income funds are to be used first (2 CFR 200.307 (d) or any superseding regulations) there should not be program income funds left over at the end of the project period. However, in general excess program income funds will be used to reduce the amount charged to the sponsor. In rare instances, and with the sponsor's written approval, the income may be carried forward into future periods and used to further project goals.

How are program income funds reported to the sponsor?

For federal awards the income is reported on the final Federal Financial Report (SF425) by OSP as part of the award closeout process. For federal pass-through awards it is reported to the sponsor so that they can report it on their final financial reporting.